ACT Submits Letter to Chairman Baucus and Ranking Member Hatch Outlining Tax Reform Goals
Today, the Alliance for Competitive Taxation (ACT), a coalition of leading American businesses, sent a letter to Senate Finance Committee Chairman Baucus and Ranking Member Hatch applauding their efforts to reform our nation’s outdated tax code. In the letter, ACT restated our commitment to tax reform that “lowers the corporate tax rate to 25 percent and establishes a modern hybrid international tax system that aligns the United States with the rest of the world and protects the U.S. tax base.” In addition, ACT believes “tax reform should simplify the tax code, promote economic growth, and pay for itself by ending tax breaks and preferences.”
ACT has already voiced our support for Chairman Baucus and Ranking Member Hatch’s “blank slate” approach to tax reform. Their work, along with the work of the Ways & Means Committee, shows growing momentum to reform and modernize America’s tax system, which was last updated more than a quarter century ago.
Read the full letter from ACT below:
July 24, 2013
Senator Max Baucus, Chairman
Senator Orrin Hatch, Ranking Member
Senate Committee on Finance
United States Senate
Dear Chairman Baucus and Ranking Member Hatch:
The Alliance for Competitive Taxation (ACT) supports comprehensive tax reform that lowers the corporate tax rate to 25 percent and establishes a modern hybrid international tax system that aligns the United States with the rest of the world and protects the U.S. tax base. We believe tax reform should simplify the tax code, promote economic growth, and pay for itself by ending tax breaks and preferences.
ACT is a group of leading American businesses with diverse industry representation that: employs over 3.8 million American workers, exports over $155 billion of goods and services, invests over $57 billion in domestic R&D, and purchases over $640 billion of supplies from 670,000 vendors, many of which are small businesses.
ACT members applaud your bipartisan efforts to make our tax system simpler, fairer, and more conducive to economic growth. Pro growth tax reform will strengthen the economy and help all businesses – large and small – grow and create jobs.
The economic case for lowering the rate, broadening the base, and adopting a modern international tax system is compelling.
A low-rate broad base tax system would create U.S. jobs and economic growth by:
- Attracting profitable business activities to our shores.
- Leveling the tax playing field and letting the market pick winners and losers.
- Simplifying the tax code, thereby reducing the costs of complying with the income tax system – estimated by the Tax Foundation to be $148 billion for businesses in 2005.
Adopting a modern international tax system – like every other G-8 country – would allow American companies to compete more effectively abroad, where 75 percent of the world’s purchasing power currently is located, and create jobs and investment at home.
When American companies succeed in foreign markets, they expand U.S. exports and create high-paying headquarters and manufacturing jobs at home.
We look forward to working with Congress and the Administration on tax reform that grows our economy, creates jobs, and makes America more competitive in the global marketplace.
The ACT Coalition
cc: Members of the United States Senate